HOW
TO BUY NEW AND USED CARS |
By
BaddTeddy
|
Knights of Kindness
www.baddteddy.com
I wrote this book with the goal of helping others. The book was almost an obsession. I had intended
it be sold in stores. This book consumed seven years of my life.
But then I met a lot of good people on the Internet. I became friends with all
of you. And finally, instead of making a few dollars for myself, I have decided
that I would rather help my friends. Almost every person you know will buy a car
sooner or later. And so probably will you. This book is designed to save you a
lot of money. If it does, all I ask, is that you take a little of what you have
saved and use it to bring a little happiness into someone else's life.
Copyright 1993 & 1999 Steven W. Nunnally,
Federal Law Prohibits Removing This Copyright Notice. Permission is granted to
forward free email copies of this book to your friends, family and mailing lists
as long as the book is kept in it's original form (unaltered). One copy may be
printed per person. It is unlawful to sell or mass produce this book without the
specific written permission of Steven W. Nunnally
TABLE OF CONTENTS
INTRODUCTION 2
BUYER EDUCATION 5
TRADE-IN 17
USED CARS 22
NEW CARS 27
FINANCING 43
CREDIT APPLICATION 56
PHONE NUMBERS 58
INTRODUCTION
ABOUT THE BADDTEDDY BUYERS GUIDE FOR NEW AND USED CARS
This book is a step by step process designed to assist you in obtaining a
bottom-line deal on every purchase of a new or used vehicle.
NO HAGGLING
This book does not teach the art of haggling or theory of negotiations. Instead,
it teaches you how to find the dealer's bottom-line. If you know the
bottom-line, there is little or no need to negotiate.
IT'S AS EASY AS FILL IN THE BLANK
This book is divided into sections. Within each section are subject areas to
explain a specific aspect of the purchase process. At the end of each section is
a worksheet or purchase offer. Fill in the blanks according to the instructions
and when you finish this book the result will be a written purchase offer that
you can hand to the salesperson and say with confidence, "This is my final
offer."
TRADE-IN
This section will teach you how to receive more money for your
trade-in by appraising your trade-in, and evaluating your trade equity. It will
also show how to receive refunds on credit life insurance and extended
warranties on the vehicle you are trading-in or selling.
USED CARS
This section teaches you how to find the dealers cost on used
cars, figure trade allowances, and how to find the lowest price at which a
dealer is willing to sell. Includes the "Used Car Purchase Offer."
NEW CARS
This section will help you find the dealers cost on new cars,
factory options, dealer extras, plus helpful information on rebates, trade
allowances and sales tax. Take the completed "New Car Purchase Offer
Form" to the dealer and let it do the negotiating for you.
FINANCE
This section explains dealer doc fees, warranties, credit life
insurance, types of loans and interest rates. Includes the "Finance
Purchase Offer".
CREDIT
This section includes advice on improving credit ratings,
lowering interest rates and includes a "Credit Application Form".
PHONE NUMBERS
This section lists important phone numbers that can help you
"before" and "after" the purchase.
2
GUARANTEES, SALES AND
ADVERTISEMENTS
THERE ARE NO GUARANTEES
Most states have no three day grace period in regard to car sales. Once you
drive off the dealer's lot you own the vehicle for better or worse. Take your
time and make no mistakes.
BEWARE OF FALSE REFUND GUARANTEES
Very few dealers will allow you to return a vehicle for a full
cash refund. Some offer a refund "credit" or allow you to trade-in the
vehicle, but these "may" actually end up costing you even more money
if you return the vehicle. The dealer already made a profit on the first vehicle
and now they get a chance to make an additional profit by "selling"
you a replacement vehicle.
DON'T BELIEVE EVERYTHING YOU SEE OR HEAR IN
ADVERTISEMENTS
Dealer advertisements are full of small print and the dealer may
leave out information accidentally or intentionally. Often the "low
payments" do not include the sales tax, destination, tags, title, doc fees,
appearance package, etc. Additionally, they may be using rebates you do not
qualify for such as; "First Time Buyer", "Recent College
Graduate", "Military", "Factory Employee", etc... Even
if it says "No Money Down", it may be a lease in which case you may be
required to pay the first month, the last month, a security deposit, taxes,
capitalized cost reduction, acquisition fees, etc...
DON'T WAIT FOR SALES
Sales are a gimmick. Dealer advertisements during a sale
proclaim that they are now offering the lowest "Blow-Out" prices in
the whole world. Don't believe it! Normally during a sale the dealer's cost
remains the same as any other time. Since the dealer's cost doesn't change, the
lowest price at which the dealer can afford to sell at does not change. If you
take the time to research the dealers cost, you should be able to get the best
deal at any time, without waiting for a "sale".
A GOOD TIME TO BUY
However, it should be noted that salespeople and sales managers,
hoping for a "bigger month end bonus check", may be more eager to make
you a slightly better deal during the last five days of the month. The dealer's
cost doesn't go down, but the amount of time that it takes a
"bonus-minded" manager to agree to the deal may be shorter.
WHERE TO BUY
Today's market offers many choices such as the traditional new
and used car dealers, no-negotiate one price dealers, brokers, credit unions,
club discount membership programs, for sale by individuals, and you can even buy
via the Internet. All of them offering promises of the best no hassle deal. Who
should you trust? The answer is simple, trust no one. Instead, fill out the
purchase offer included in this book to find the bottom-line price. No matter
who the seller is: If they are willing to sell at or below the bottom line price
on the purchase offer, buy the car. If they won't, go somewhere else.
3
ESTABLISHING A BUDGET
Before looking at new cars it is important to decide how much
you can afford to spend.
BEGIN BY FIGURING YOUR OWN PERSONAL HOME BUDGET
Sit down at home and figure your monthly bills and expenditures.
Allow for emergencies, changes in jobs, medical, entertainment, rent/mortgage,
utilities, loans, credit cards, increases in family size, food, laundry,
retirement, etc... Then allow for the unexpected and a margin for error.
Take into consideration possible increases in car insurance premiums and fuel
usage in addition to the monthly car payments.
The remainder is the "maximum amount" that you can reasonably afford
to spend on a new car. Be conservative. Make allowances for future emergencies
and possible changes in income. Decide on a maximum amount you are willing to
spend. Don't let the salesperson, your emotions, or the excitement of a new car
guide you. Decide on this figure at home, before you go into negotiations, and
stick to it.
When deciding how much you can spend on a car, allow for sales tax, license
plate fees, down payment, trade-in equity or inequity, rebates and possible
discounts.
PAYMENT GUIDELINE
Use the following payment guideline as a reference tool to
decide on a price range that is within your budget. Payments are approximate and
due to fluctuations in interest rates actual payments may be slightly higher or
lower. You will figure your actual monthly payments in the chapters that follow.
Most banks charge higher interest rates for longer term loans. Extending the
term of the loan may cost hundreds or even thousands of dollars extra. Save
money by taking a shorter term loan.
Amount 36 mo 48 mo 60 mo
Financed 8% APR 9% APR 10% APR
$ 5,000 $155 $125 $105
$10,000 $315 $250 $210
$15,000 $470 $375 $320
$20,000 $625 $510 $425
$25,000 $785 $635 $530
$30,000 $940 $760 $640
TO AVOID EXCESSIVE FINANCE CHARGES, NEVER FINANCE FOR OVER
60 MONTHS
4
BECOMING
AN EDUCATED BUYER
Most consumers pay too much when buying a car because they do
not "completely" understand the buying process and how to avoid dealer
money traps.
HOW MUCH OF A DISCOUNT IS ENOUGH?
Most consumers realize that paying full window sticker price for
a new car would be a big mistake. Unfortunately, they do not know the dealers
cost. Therefore, their buying decision is often based on guessing at how much
money they should be able to negotiate off the sticker price of a car.
"EVERY CUSTOMER" DEMANDS A BIG DISCOUNT
Car dealers know that "every" customer is expecting to
negotiate. They know that most will not buy without "a big discount."
So the dealer using psychology, starts out at a higher price so that consumers
can negotiate a big discount and go home thinking that they have
"outsmarted" the dealer and made an excellent buy.
"A GOOD DEAL IS A STATE OF MIND"
Although there are some honest car dealers, other
less-than-honest dealers operate under the assumption that for the customer
"a good deal is a state of mind". And that if they can make you
"believe" you have negotiated an extra good deal, they can sell you a
car. As a result, car sales has become one of the biggest con games ever.
GET AN EDUCATION IN CAR BUYING
The following story is designed to educate you about the car
buying process. First you will learn how a car dealer can allow you several
thousand dollars in "negotiated" discounts and still overcharge you.
.......ONCE UPON A TIME.......
Twin brothers, Little Johnny and BaddTeddy, bought identical new
cars. They worked at the same job and they both had good credit. They had
identical trade-ins of equal value. Everything was identical.
LITTLE JOHNNY
Little Johnny (John) was an average new car buyer and used the
"haggling" method to negotiate what he considered a good deal (state
of mind). As a result of John's hard work and stubbornness he received several
thousand dollars worth of "negotiated" savings. (Little Johnny paid to
much!)
BADD TEDDY
Badd Teddy (Teddy) on the other hand knew what he was doing. He
researched the dealers cost, interest rates, insurance and had his trade-in
appraised elsewhere before going in to negotiate. Teddy made an "informed
decision" and saved far more money than John.
THE REAL DIFFERENCE
Even though John and Teddy bought identical cars, Teddy paid
$7,000 less for his car. Don't believe it? Dear John, Read and learn!!!
5
ONCE UPON A
TIME
John
bought a new car in the traditional manner. He went to the dealer and battled it
out with Salesman Sam for Six hours and "thought" he got a good deal.
Teddy researched the dealers cost, dealer fees, interest rates and had his
trade appraised "before" going to a reputable dealer.
MSRP
John bought
a Moonbeam 2000. The Manufacturer's "Suggested" Retail Price (MSRP)
was $12,000.
Teddy bought a Moonbeam 2000. The Manufacturer's "Suggested"
Retail Price (MSRP) was $12,000
PURCHASE PRICE
John and
Salesman Sam negotiate Price.
John gets frustrated watching Sam run back and forth for three hours. On each
trip back Sam cried that his boss needed a just a little help (more of John's
money). Finally, John agreed to buy at "$800 off of the dealers sticker
price". Total $11,200
Teddy wrote out a purchase offer before he went to the dealer. He used
Edmund's New Car Price Guide to determine that the dealers invoice was $10,880.
Teddy offered to pay $200 over dealer invoice and refused to negotiate price.
Total $11,080.
JOHN
TEDDY
12,000 MSRP 12,000
- 800 Negotiated
Savings
- 920 (Discount ($200 0ver Invoice)
11,200
11,080
APPEARANCE PACKAGE
John's Moonbeam
had a Dealer Add-on Sticker for a $300 Appearance Package.
John never asked what an "Appearance Package" was, or the Dealers
cost. He assumed that it somehow added value to his new car. John paid the $300.
Teddy's Moonbeam had a dealer Add-on Sticker for a $300 Appearance Package
Teddy verified that the Appearance Package in reality was only a pinstripe and
door edge guards. Teddy refused to pay more than the dealers cost for these
items, because he knew that often that an appearance package consists of little
more than dealer profit. Dealer cost was $20. So was Teddy's.
JOHN TEDDY
11,200
11,080
+ 300 Appearance
Package + 20 Refused to pay
11,500
11,100
6
FACTORY TO CUSTOMER
REBATES
John was
told that there was a $300 Factory to Customer Rebate.
Teddy was told that there was a $300 Factory to Customer Rebate.
JOHN
TEDDY
11,500 11,100
- 300 Factory to Customer Rebate -
300 Factory to Customer Rebate
11,200
10,800
FACTORY TO DEALER
REBATES
John was
told that there were no other rebates. (The dealer kept the hidden factory to
dealer rebate)
Teddy called several dealers and found that he could receive a $800 hidden
Factory to Dealer Rebate.
JOHN TEDDY
11,200
10,800
- ----- Salesman "forgot" to tell John -
800 Factory to Dealer Rebate
11,200
10,000
FACTORY EMPLOYEE
REBATE
John
would have qualified for an additional Factory Employee Rebate because his
father was a Car Factory Employee, but he was not aware that members of a Car
Factory Employee's family could receive this rebate.
Since John never mentioned that his father was a Car Factory Employee, he did
not receive this rebate.
Teddy also qualified for the Factory Employee Rebate because his father
was a Car Factory Employee.
Teddy bought the same car as John with the same MSRP.
As a result Teddy received a rebate for 5% of the MSRP
MSRP was 12,000, so Teddy's rebate was $600
JOHN
TEDDY
11,200
10,000
- ----- Didn't Ask
- 600 Factory Employee Rebate
11,200
9,400
7
FIRST TIME BUYER
John had no
experience buying cars so he didn't know to ask about additional financial
incentives.
Teddy researched additional rebates in dealer advertisements, etc.. then he
called local dealers and found that he also qualified for a First Time Buyer
Rebate for $400
JOHN TEDDY
11,200
9,400
- ------- Didn't Ask
- 400 First Time Buyer Rebate
11,200
9,000
VEHICLE PROTECTION
PACKAGES
The
salesman suggested that John should protect his investment with a vehicle
Protection Package. The package included rustproofing, fabric and paint
protection.
The salesman said that the normal cost was $800, but they had a special for $200
off.
John wanted to protect his new car so he paid the dealer $600.
Teddy wanted a Vehicle Protection Package that included everything for his
car too.
However, Teddy knew that some dealers can make "Big Bucks" by
overcharging for these packages.
Teddy called local rustproofing companies and found the dealer's cost was $300.
Teddy paid the dealer $300.
JOHN
TEDDY
11,200 Purchase
Price
9,000
+ 600 Protection Package
+ 300 Protection Package
11,800
9,300
8
RADIO
John wanted the dealer to install an AM/FM/Cassette Radio
in his new car.
The dealer inform John the price was $599.
John said this was too much.
After 30 minutes of dickering John and the salesman agreed on $400. The salesman
said that they could sign the contracts that day and John would need to bring
the car back the following week to have the radio installed.
Secretly, the salesman planned to wait until "after the contracts were
signed" so he could install a cheap generic brand radio.
John Paid $400 and was very unhappy with the quality of his new radio.
Teddy wanted the dealer to install an AM/FM/Cassette radio in his new
car.
Teddy called several companies that install radios. He asked specific questions
about quality and price.
Teddy specified "in writing" that he wanted a BaddTunes Classic Jam
Gold Series AM/FM/Cassette Radio with Digital Tuning and Clock, plus four 120
Watt Boomerang Subatomic Super Speakers.
Teddy verified the dealers cost in advance ($350) plus allowed the dealer a $25
profit for having the work done "before" Teddy took delivery of his
new car.
Teddy paid $375 and completely enjoyed listening to BaddTeddy Wavs and Jams on
his new stereo system.
JOHN
TEDDY
11,800
9,300
+ 400 Substandard Generic Radio
+ 375 Quality Stereo System
12,200
9,675
SUN
ROOF
John wanted the dealer to install a sun roof.
The salesman told John the sun roof was $399.
John spent another hour haggling over price with the salesman and they finally
agreed that for $300 the dealer would get the sun roof installed in John's new
car the following week.
A week later the dealer installed a small, generic brand, non-removable sun roof
in John's car. John was unhappy!
Teddy wanted the dealer to install a sun roof.
Teddy called several companies that specialize in installing sun roofs and asked
specific questions about quality, size and price.
Teddy specified "in writing" to the dealer that he wanted them to have
Sporty Tops install a large, removable, sun roof with dark tint.
Teddy paid the dealer's cost of $200, plus $25 dealer profit, for having the
work done "before" Teddy took delivery.
JOHN
TEDDY
12,200
9, 675
+ 300 Small Generic Sun roof
+ 25 Large Removable Sun roof
12,500
9,900
9
TRADE-IN
John
had
an Old Clunker that his father gave him a few years ago. John decides to trade
it in on his new car.
John asked Salesman Sam what his trade-in was worth. Sam said his boss was
really willing to go out on a limb and give John $400 for his trade-in.
John wanted more for his trade. He spent an hour haggling while listening to Sam
bad mouth his trade.
Finally, John and Sam agreed on a trade value of $700.
Teddy was given an identical Old Clunker which he decided to trade in on
his new car.
Teddy went to "another dealer" and paid the sales manager to appraise
his Old Clunker's wholesale "trade-in" value.
The appraiser looked at and drove Teddy's car and then found the wholesale value
in the N.A.D.A. and Black Books (used by most dealers). He informed Teddy that
the trade-in whole sale value was $1,000.
When Teddy traded in his car he informed the dealer that the car had been
appraised for $1000 in Black Book.
The dealer realized that Teddy was an informed consumer and after inspecting his
trade-in agreed to a $1000 trade allowance.
JOHN
TEDDY
12,500
9,900
- 700 Trade-in
-1,000 Trade-in
11,800
8,900
10
DOC FEE
John was
introduced to the Finance Manager.
The Finance Manager started spitting out facts and figures so fast that John's
head began to spin.
John asked what the $200 Doc Fee was for.
The Finance Manager told John that the Doc Fee was for this, that and the other
thing, plus he offered to give John a coupon book with $200 in coupons.
John's headache was getting worse, so against his better judgement he paid the
doc fee to avoid more confusion.
Teddy was prepared when he was introduced to the Finance Manager. He was
aware that Finance Managers are usually expert "commissioned"
salespersons.
Teddy knew that doc fees are a rip off and offer nothing of real value.
The Finance Manager mentioned the "free" coupon book that was
"included" in the doc fee. Teddy said the coupon book was of little
value to him, because he would have to spend money to use the free coupons.
Teddy refused to pay doc fees.
JOHN
TEDDY
11,800
8,900
+ 200 Doc Fee (Dealer Profit)
-------- Refused to Pay Doc Fees
12,000
8,900
EXTENDED
NEW CAR WARRANTY
The Finance Manager suggested that John should protect
his rather sizable investment.
He said that for less than the cost of a cup of coffee, 40 cents a day, that
John could buy an Extended New car Warranty.
John said ok.
The Finance Manager conveniently forgot to inform John of the total cost of the
warranty. There were nearly 2,000 days on the contract, at 40 cents a day.
Total cost of the warranty was $800.
Teddy asked the Finance Manager to show him the best Bumper to Bumper
Extended Warranty available. He specified a warranty with "no
deductibles"
Teddy then insisted on seeing the dealers cost book for the warranty. The
dealers cost for the best warranty was $500.
Teddy knew the Finance Manager was a commissioned salesperson so he agreed to
pay $100 over the dealers cost for the warranty.
Teddy bought the "best" warranty for $600.
JOHN
TEDDY
12,000
8,900
+ 800 Warranty (deductible)
600 Best Warranty (No Deductible)
12,800 9,500
11
CREDIT LIFE INSURANCE
John's
father co-signed the loan.
The Finance Manager suggested that John protect his father from being stuck with
John's car loan in the event that John dies or becomes disabled.
The Finance Manager further added that "this protection is very inexpensive
at about the cost of a large cup of coffee or around 50 cents per day".
John was beginning to believe that he may have to give up coffee altogether, but
he decides it is worth it to protect his father.
The Finance Manager did not mention the total cost was $1,000.
If John dies the lender receives the money and John's dad will be out of Debt.
Teddy's father co-signed his loan.
Teddy wanted to protect his father too, but he knew that some dealers grossly
overcharge customers for Credit Life Insurance.
Instead Teddy contacted his personal life insurance agent. Teddy asked for a
Declining Term Life Insurance Policy to cover the amount of the loan.
The insurance agent offered Teddy a low cost Declining Term Policy that includes
Disability Insurance. Teddy's cost was $300.
The Declining Term Life Insurance Policy also offered an added benefit. In the
event something happened to Teddy, the insurance would pay directly to his
father. Not the lender.
JOHN
TEDDY
12,800
9,500
+1,000 Credit Life (Dealer)
+ 300 Term Life & Disability Insurance
13,800
9,800
SALES TAX
John paid
more for his car than Teddy car, so John will also pay more sales tax.
John bought his car in Florida which has a 6% sales tax.
Teddy paid less for his car, so he pays less sales tax...
Teddy also pays the 6% Florida sales tax.
JOHN
TEDDY
13,800
9,800
+ 828 (6% Florida Sales Tax)
+ 608 (6% Florida Sales Tax)
14,628
10,408
12
FINANCING
The Finance Manager told John that he could get John a
Preferred Rate on Financing.
This of course sounded good to John who worried about every penny.
What the Finance Manager forgot to tell John was that a "Preferred
Rate" was the interest rate the dealer preferred to charge him.
The Finance Manager secretly plans to charge John a high interest rate of
10.5% for 66 long months.
Teddy called all the local banks to find the lowest interest rate,
"before" he went to the dealer. He turned down dealer financing
because he was able to receive a lower interest rate from a local bank.
Teddy's rate was lower for three reasons
1. A smaller amount financed
2. A shorter term loan
3. No dealer profit on the financing
Teddy's interest rate was only 7% for a shorter 48 month period.
13
PAYMENTS VERSUS
TOTAL COST
John and
the Finance Manager argued about payments for an hour. John's primary concern
was low payments.
Finally John and the Finance Manager agreed on payments of 292.20.
John thought that because he had low payments that he had won the battle.
In John's haste to wrap it all up he barely glanced at the contract.
He verified the payments were 292.70. But he skipped the sections that showed
the term was 66 months and that the interest rate was 10.5%.
The interest charge on John's loan was a whopping $4,690.30.
Teddy was most concerned with getting lowest possible cost and reducing
his interest charge costs.
Teddy's payments were 249.23 for only 48 months.
Not only were Teddy's payments lower than John's, he had 18 less payments to
make.
Teddy verified his contract carefully!
Teddy verified every single detail!
The interest charge on Teddy's loan was only $1,555.16 ($3,135.14 less than John
paid)
JOHN
TEDDY
14,628
10,408
+4,690.30
Interest
+1,555.16 Interest
19,318.30 Total of
Payments
11.963.16 Total of Payments
John Paid (+) $19,318.30 Plus his trade-in
Teddy Paid (-) 11,963.16 Plus his trade-in
The difference 7,355.14
Teddy paid $7,355.14 less for his
MoonBeam 2000
Teddy received a better stereo system
Teddy received a bigger and better sunroof
Teddy received better insurance coverage
Teddy got a better warranty, that will save him money because it has no
deductibles...
Ok, next time you buy a car, you decide, do you want to be known as Dear John,
or a BaddTeddy?
14
EPILOGUE
Two years later John and Teddy crashed into each other. John and Teddy were ok,
but both Moonbeams were totaled. The insurance companies decided that the
current market value of each car was $5000 and they sent a check to each of John
and Teddy's banks.
The remaining balance on John's loan The remaining balance on Teddy's loan
after 24 payments was $9,656. after 24 payments was $5,588.
The insurance company sent John's The insurance company sent Eddie's
bank a check for $5,000. bank a check for $5,000.
$9,656 Balance Due Lender $ 5,588 Balance Due Lender
- 5,000 Insurance Check - 5,000 Insurance Check
$4,656 John owes lender 588
Teddy owes lender
REFUNDS
John owed $4,656 on a car that he
no
Teddy remembers reading that extended
longer
owned. warranties and declining term life
insurance policies are refundable on a
He was unaware that Credit Life
insurance a prorated
basis.
policies and extended warranties were
partially
refundable.
Teddy's refunds totaled $600.
$588 Balance Due Lender
- 600 Refund
$4,656 John's Owes
Lender
$ 12 Eddie is Ahead
15
WHAT HAPPENED TO
JOHN AND TEDDY?
John could not find a bank willing to loan
Teddy had no debt, good credit and $12
him enough money to buy a new car and
in his pocket.
pay-off the $4,656 loan on his old car.
Teddy bought a new Moonbeam 2100 XTC
John had no
car. and drives off into the sunset.
Since John's job required a car,
John lost
his job. After John lost
his job, he couldn't
pay his mortgage.
John lost his house.
John is forced to file bankruptcy, and
now the only thing John has to his name
is BAD CREDIT!
DO YOU WANT TO BE
A JOHN OR TEDDY?
Everything in the "John and Teddy Story" is based on
real car deals. John is an average consumer (some get much worse deals). Teddy
is among the few consumers that actually gets a "bottom line" deal
based on an "informed decision".
16
TRADE-IN: WHAT IS
MY CAR WORTH
Many dealers make huge profits by "stealing the
trade". These dealers try tricks such as false appraisal values,
exaggerating the cost to repair damages, etc... to get you to accept less than
your trade's true (wholesale) value. They know your car is worth more money.
They are trying to get you to accept less so that they can make larger profits.
Hence, the term "stealing the trade".
SELL YOUR VEHICLE AT RETAIL
Consider selling your vehicle yourself. If you trade the vehicle
in, most dealers will only allow you wholesale value. However, if you sell the
vehicle yourself you can ask retail. This can mean several hundred or possibly
thousands of additional dollars in your pocket.
Have the vehicle thoroughly cleaned, washed and waxed, get the motor cleaned,
check and fill fluids, etc... Clean vehicles attract buyers while dirty vehicles
scare potential buyers away. If the vehicle is worth more than $1000 take it to
a professional detail shop (Yellow Pages). Complete detailing costs less than
$100 but can increase the retail value by several hundred dollars.
VERIFY THE LOAN BALANCE AND AVOID GETTING RIPPED OFF
Never trade in a car without first calling your lender to verify
the loan balance (if any). Unscrupulous dealers can steal hundreds, if not
thousands, of dollars of your money by using a false loan payoff balance. This
can done by several methods.
One way is telling you that your loan payoff is higher than it really is (dealer
pockets the difference of up to several thousand dollars of your money) .
Another way to take your money is for the dealer to confuse the buyer into
believing that the payoff is same as the total of the remaining payments (The
actual payoff may be much lower, because the payments include interest that you
are not required to pay if you payoff the loan early). The easiest way is to get
you to sign a blank payoff authorization form (which he later fills in with
whatever numbers he wants).
There are two very easy things you can do to avoid getting ripped off. First,
call the lender and verify the exact balance owed for the date that you wish to
trade the car in. The second is to read the "payoff authorization
form" and verify the payoff is correct. Never sign a blank form.
YOU ARE ENTITLED TO THE WHOLESALE VALUE OF YOUR TRADE
If you do trade a vehicle in at a dealership, you should be
aware that you are entitled to full wholesale value. Wholesale is the market
standard and the top dollar a dealer would pay for your car if he bought it at
an auction or from another dealer. If you come prepared and show the dealer that
you know the wholesale value of your trade-in, the dealer will realize you can't
be bluffed and may decide not to waste time playing games.
Although many dealers will try offering less (negotiating), if you are firm and
patient, most dealers will eventually give in. Dealers will full wholesale to an
educated buyer because the dealer can still make a profit by selling your car at
retail.
17
APPRAISE YOUR TRADE
Be smart! Get an appraisal of your own. Start by calling used
car managers at other dealers. Explain that you are not buying a vehicle at
their dealership, but that you are willing to pay them $15 to $20 for an honest
appraisal of your trade-in based on wholesale value. Also, ask them what you
should ask for if you sell the vehicle yourself (retail).
KELLY BLUE BOOK, NADA & LOCAL AUCTION REPORTS
Appraisals should be based on Blue Book, NADA (Blue Book), and
local auction reports (ask to see the dealers copy) with consideration to
vehicle condition and mileage. The Black Book "Official Used Car
Guide" is published on a weekly basis by National Auto Research. The
wholesale (dealer) and retail (consumer) versions of the NADA "Official
Used Car Guide" are published quarterly by the National Auto Dealers
Association. When using this book refer only to the wholesale (dealer) version.
Do not use; red book, green book, loan value, insurance values, etc... These are
intended for other purposes and do not accurately reflect what a dealer is
willing to pay.
WHERE TO FIND
BLUE BOOK AND NADA
Blue Book and NADA are available at many libraries (reference
section). If your library does not have these books, ask the librarian to order
them. Additionally most bank loan officers, credit unions, loan companies and
insurance companies use Blue Book and NADA during the course of their business.
Give them a call, most will offer to help, in hopes of earning your business.
CATEGORIES
When your car is appraised it should fall into one of several
categories. Categories range from worst condition (lowest value) to near perfect
condition (highest value). Dealers decide which category that your vehicle falls
based on mileage, appearance and running condition. The dealer then uses the
vehicle type, model, category and year to look up the average wholesale value
for your vehicle. The dealer may also take into consideration allowances or
deductions based on options, lack of options and excess mileage.
ALLOWANCE FOR EXTRAS
If your trade-in has equipment that is not standard for that
make and model, the dealer makes allowances for "adds". Adds are
amounts that are added to the book value for equipment that is not standard
factory equipment for the make and model you are trading in. The biggest adds
are normally for "factory" air conditioning, automatic transmission
and engine size upgrades. Smaller adds are also listed for power windows, power
locks, factory sunroofs, T-tops, fancy wheels, etc... Ask the used car manager
doing the appraisal to show you the value of each add.
DEDUCTION FOR EXCESSIVE MILES
If your trade exceeds an average of 15,000 miles for each year
in service, it does not necessarily fall into a lower category. Instead, the
dealer may make a smaller deduction of value based on number of excessive miles
and category of car. If the dealer says you have excessive miles, have him show
you the book he is using and the dollar amount of the deduction.
18
RECEIVE A REFUND ON YOUR EXTENDED WARRANTY
If you purchased an Extended Warranty and it has not yet
expired, you may be entitled to a partial refund. Extended Warranty refunds are
not automatic when you total or sell your car. To receive a refund you must go
to the dealer that sold you the car and ask for it.
Refunds may be requested at any time. You do not "need a reason". You
may decide that the warranty is not worth the cost and demand a prorated refund.
Refunds are normally prorated based on time and mileage. They are not normally
based on whether or not the warranty was actually used.
If you borrowed the money to purchase the warranty, most likely the refund will
be sent to the bank to reduce the loan balance and interest charges.
Do not cancel a warranty if you may need it in the future.
"WARRANTY
& CREDIT LIFE REFUNDS"
GET A REFUND ON CREDIT LIFE INSURANCE
If you purchased a Declining Term Life Insurance Policy from an
insurance agent or Credit Life/Disability Insurance from the dealer or the
lender, and the loan has not yet expired, you are normally entitled to a refund.
Refunds are usually prorated by time over the life of the loan.
Credit Life/Disability Insurance refunds are not always automatic if you trade
or total your car. You may cancel Credit Life/Disability Insurance at anytime.
You do not need a reason.
No matter what the reason, you must contact the dealer or lender (If you
obtained your own financing, go to the lender) and request a refund.
Since Credit Life Insurance is designed to protect a loan and the money to buy
the insurance was included in the loan, most loan refunds will be paid directly
to the lender and used to reduce your loan balance.
19
TRADE APPRAISAL
WORKSHEET
"INSTRUCTIONS"
1. Enter the wholesale value of your trade-in from appraisal
including the wholesale cost of
any necessary repairs. (Retail Value if selling the vehicle yourself)
If you feel more comfortable negotiating, than making a take it or leave it
offer, you can try
starting negotiations asking for a higher trade-in price, but never agree to
sell/trade-in your
vehicle for less than its' appraised wholesale value.
2. Enter any expected refund amount from extended warranties.
3. Add lines 1 and 2.
4. Enter any expected refund amount from credit life policies.
5. Add lines 3 and 4. The result is the cash value of your trade.
6. Enter loan balance or enter (0) if no loan.
If there is an existing loan balance still due, contact the lender. Ask for the
current loan
balance. Ask how long this balance is good for and the daily interest charge
(per diem).
7. Subtract line 6 from line 5.
If the result on line 7 is a positive number, this is your "trade
equity".
Trade Equity can be used just like cash as a down payment.
If the result on line 7 is a negative number, you owe more than the car is
worth.
You must either pay this off in cash or add it to the amount to finance on your
new car.
20
TRADE EVALUATION WORKSHEET
1. + _______ Trade Value based on appraisal by Used Car Manager,
NADA, Black Book.
If selling the vehicle yourself enter the retail value
_______________________________________________________________________
2. + _______ Extended Warranty Refund (if any)
3. = ( )
_______________________________________________________________________
4. + _______ Credit Life\Disability Refund (if any)
5. = ( ) Cash Value
of Trade-in
________________________________________________________________________
Do the addition above. The result is the cash value of your trade
_______________________________________________________________________
6. - _______ Current Loan Balance Date Verified ______ Good
Until ____________
7. = ( ) Equity Per
Diem _________ Name of Lender ________
Phone ___________ Months Remaining ______
________________________________________________________________________
Subtract the Existing Loan Value. The result is "trade
equity"
________________________________________________________________________
If the result is a positive number, this is your trade equity and can be used
just like cash to
reduce the cost of your new vehicle.
________________________________________________________________________
If the result is a negative
number, you owe more than the
car than is worth (Negative Trade
Equity). This amount will be added to your new car loan unless you provide
enough cash to
cover the difference.
________________________________________________________________________
Form Copyright 1993 & 1998, Steven W. Nunnally,
USED CARS
- "SELECTION AND APPRAISAL"
USED CARS ARE SOMEONE ELSE'S TRADE-INS
The first step in determining a used car's value is
understanding where the vehicle came from and how much the dealer paid for it.
Since most used cars were traded into the dealership by someone else it is very
important to understand how the trade-in system works. Therefore, before
beginning to read about used cars take a few minutes and read the preceding
section about trade-ins.
VEHICLE SELECTION
Select a vehicle that meets your personal, business and
financial needs the same as if you were shopping for a new car. This includes
verifying the cost of insurance before you buy! Please see vehicle selection in
the New Car Section for details.
AVOID RENTAL CARS
Have you ever rented a car? If so, you have you probably realize
that many people do not take good care of rental cars. Out of the large number
of people that drive them there are bound to be a few hot-rodders. They make
fast starts with the tires throwing up clouds of rubber, drive at excessive
speeds, spill coffee on the seats, leave cigarette burns in the carpet and cause
scratches, dents and dings. These cars get cleaned up before auction but they
may still have excessive mechanical wear and tear. Therefore they should be
avoided.
HOW TO TELL IF IT'S A RENTAL
Look for rental car company stickers (or sticky spots where the
stickers used to be) on the visors, in the trunk, inside the door jam, under the
hood and in the glove box. Ask the dealer to show you the title or registration
from the previous owner. Don't take the dealer's word for it, ask them to show
you the title. If the dealer doesn't have these items the vehicle may have come
from a rental company, auction, etc... If it was a rental, don't buy it.
CALL THE PREVIOUS OWNER
If the title shows it was owned by an individual, call the
previous owner and ask lots of questions about maintenance, mechanical problems,
repairs, mileage (in case odometer has been rolled back), etc... One phone could
possibly save you hundreds of dollars in repair bills on a lemon.
AVOID HIGH MILEAGE VEHICLES
Avoid vehicles that have high mileage. Even if the vehicle looks
and runs good, every mile driven puts wear and tear on the vehicle and uses up
the vehicles remaining life expectancy. It's important to consider how may miles
will the vehicle have on it before the loan is paid off or you trade it in?
VERIFY IF THERE HAVE BEEN ANY RECALLS
Call the Auto Safety Hotline to verify if there have been any
recalls. 1(800)424-9393
22
TAKE AN OVERNIGHT TEST DRIVE
Ask to take the vehicle for an over night test drive. Many
dealers will agree to this as long as you have full coverage insurance and a
valid driver's license.
BEWARE OF CARS THAT LOOK "TOO GOOD"
Beware of freshly repainted vehicles. Why did it need
repainting? Was it wrecked? Many repaint jobs are done very cheaply. If the rust
is not completely removed it may come through the new paint within a few months.
Ask if there is a transferable warranty on any repairs or paint jobs, etc...
MECHANICAL CHECKOUT
Take the vehicle to a good qualified mechanic for an inspection.
Spending $25 to $50 to have the vehicle inspected could help you avoid paying to
repair a lemon. The inspection should include an electronic check of the motor,
emissions testing, brake inspection, fluids color inspection and a road test.
The road test should be for several miles because some problems are not
immediately apparent and only show up when the engine is hot. If your state or
county requires any type of emissions control testing make sure to have the
emissions inspection done before you buy. Emission control problems can very
expensive to repair.
USED VEHICLE APPRAISAL
If you are considering buying a "used" vehicle, you
should have it appraised in the same manner you would have your trade-in
appraised. (See the section on Trade-ins). Take the vehicle to the used car
manager that appraised your trade-in and offer to pay the Used Car Manager ($15
- $20) to check out and appraise this vehicle. If you have no trade, go to any
dealer except where you plan to buy.
Many dealers will point out flaws in the vehicle you are buying in the hopes of
selling you one of their cars. This advice works to your benefit. After all you
do not want a car with problems.
BLUE BOOK AND NADA
The appraisal should be for wholesale value based on Black Book,
NADA, local auction reports and the Used Car Managers Experience. Wholesale
value is what most dealers sell used vehicles back and forth to each other for
and is the industry standard. This is the "highest amount" that most
dealers would have paid for the car. Although they may have paid considerably
less by "stealing the trade". For more details on Black Book and NADA
values see the section on Trade-ins.
WHOLESALE PRICES
AVAILABLE AT
KBB.COM
USED CAR PRICING SERVICES
The following is a list of used car pricing services that will
give you the high and low market value of most used cars. Have all information
about the car you are calling about written down "before" you call as
these services charge an average of $1 to $3 per minute.
1(900)999-2277 Auto Price Line 1(900)258-2886 Consumer Reports "Used
Cars"
1(900)786-AUTO Edmund's
1(900)321-ROAD Road and Track Auto Hotline
23
USED CAR PURCHASE
OFFER
INSTRUCTIONS
The following instructions are designed to help you fill
out the "Used Car Purchase Offer".
1. Fill in the information at the top of "Used Car Purchase
Offer" for both vehicles.
2. List repairs that you want the dealer to include in the
purchase price. (Never accept oral
promises)
3. Next to purchase, enter the wholesale value (from the
appraisal) for the vehicle you intend
to buy. You can try offering less.
4. Next to Trade-in, enter the wholesale value, or "0" if no trade,
for the vehicle you want to
trade-in. Note: This refers to the vehicle's wholesale value - Not Trade Equity
5. Find the "Difference in Wholesale Value" by subtracting
"Trade-in Value" from "Purchase
Value".
6. Next to "Dealer Profit" enter what you believe to be a small but
reasonable dealer profit.
Make allowances for the following dealer costs and of course dealer profit:
Cleanup costs ($100 - $150). Repairs, if any, ($100 - $300). Dealer Profit ($200
- $600).
You can "try" a lower offer, but never pay more because the vehicle
may depreciate
instantly, as you drive out of the dealer's lot, by amount you paid in excess of
the
vehicle's true market value.
7. Add "Dealer Profit" to the "Difference in Wholesale
Value" to find the "Trade Difference".
This is the "cash difference" that you are paying for the car.
8. Sign and date the offer.
THIS IS YOUR FINAL OFFER
This is your final purchase offer. Take it with you to the
dealer. Give it to the salesperson and inform him that this is your final
purchase offer. When they try to negotiate, they may say "you have made a
mistake", that they can't possibly sell that car for such a low price,
etc... Stand Firm! Because you have allowed them a small, but reasonable profit,
most dealers will eventually take your offer. Make sure that the dealer signs
the agreement.
THE FINANCE MANAGER
The salesperson will now turn you over to the finance manager
who's job it is to try to increase dealer profit by selling you extended
warranties, credit life insurance, financing, etc... Please read the section on
"Financing" where you will prepare a separate purchase offer for the
finance manager.
24
USED CAR
PURCHASE OFFER
VEHICLE TO BE PURCHASED
Year __, Make ______, Model _________, Miles _______, VIN
________________
_______________________________________________________________________
VEHICLE TO BE TRADED
Year __, Make ______, Model _________, Miles _______, VIN
____________________
________________________________________________________________________
"FIRST AND FINAL OFFER"
Purchase Price includes the following repairs
_______________
_______________ ______________
_______________
PURCHASE
+_______ (Wholesale based on Appraisal, NADA/Black Book)
TRADE-IN
-
(Wholesale based on Appraisal, NADA/Black Book)
VALUE DIFFERENCE
=(
) (Wholesale)
DEALER PROFIT
+
(Includes profit, cleanup & maintenance)
TRADE DIFFERENCE =(
)
Deal Subject to customer
acceptance after a mechanical inspection
_____________________________________________________________________
Dealer declares that this vehicle was not returned as a lemon!
Dealer representative please sign here ____________ Date __/_/__
_____________________________________________________________________
Purchaser Signature _________________________ Date __/__/__
______________________________________________________________________
Name ________________ Address ______________________ Phone ___________
______________________________________________________________________
Form Copyright 1993 & 1999, Steven W. Nunnally,
_____________________________________________________________________
25
"BUY-HERE/PAY-HERE"
Never buy from a buy-here/pay-here lot. No matter how bad things
get, a buy-here/pay-here lot is not the answer. If you are having financial
problems, buy-here/pay-here may only make them worse.
Even at an honest buy-here/pay-here lot the cars are a gamble. This is in part
because you cannot speak to the previous owner. In addition, many of these lots
buy from auctions or purchase dealer leftovers (trade-ins that the dealer did
not for some reason want to sell on their own lots).
The process begins with the buy-here/pay-here buying the car at the dealer or
auction. Some spend very little time checking the mechanical condition of the
car. They are interested in how the car looks because most consumers buy based
on appearance.
The car is then run through clean-up (detailing). The transformation can be
amazing. They make those old clunkers sparkle.
Sometimes the dealer throws on a coat of paint, etc. These paint jobs are often
cheap and temporary. Some paint over the rust instead of sanding the rust off.
Within a few months the rust comes through and the new paint starts flaking off.
Mechanical repairs are generally sparse. Why put more money in the car than
absolutely necessary? For a few the rule is, if it runs long enough to get off
the lot, don't fix it.
Now they advertise "Low Down Payment" and "Low Weekly
Payments". The low down payment is often as much or more than the dealers
entire investment in this car. The low "weekly payments" when figured
on a "monthly" basis can be very high. Often you could have bought a
small new car for less per month.
Buy-here/pay-here lots stress Low Down and Low Weekly, but they glaze over the
long term. Interest rates can be sky high (21% or more). Payments may last for
18 - 24 months. That is between 76 - 108 weekly payments. Often the dealer may
make 2 to 10 times what the car is worth. Ask Yourself, "If the dealer is
honest, why didn't he tell me the total cost (including total of payments) up
front"? If you do decide to make a purchase at a buy-here/pay-here lot
carefully read the truth in lending form that will show the total cost including
total of payments and cash down.
Many buy-here/pay-here's require you to buy full coverage insurance. Full
coverage on an old clunker is usually money wasted. The rates are high and they
only pay a minimum if the vehicle is totaled. Because there is a lien on the
vehicle, if the vehicle is totaled the insurance check goes to the
buy-here/pay-here. Now you have no car, but you do have car payments.
If you miss even one payment by a few days, they can repossess the car and
resell it. They make money and you get bad credit.
If you can afford the down payment at a buy-here/pay-here, you can pay cash for
an older car (same cars as at buy-here/pay-here's). Look in the newspaper. Ask
the previous owner lots of questions. Negotiate. Do the clean up work on the car
yourself. And remember, how a car runs is more important than how it looks. Save
money and get a better car.
26
"NEW CAR
SELECTION PROCESS"
Use the suggestions listed below to narrow down your choices until you have
selected the vehicle that meets "all" of your needs.
MAKE A LIST OF AFFORDABLE CARS
Make a list of cars that appeal to you. Because you can expect
some type of discount or rebate on most cars you can include cars that are up to
a few thousand dollars over your budget.
PLAN AHEAD
Will your vehicle needs be changing in the next few years? If
you get married, will you need extra space for the wife and kids? Will you be
taking a sales position where you need a 4 door sedan? Plan ahead!
VISIT LOCAL DEALERSHIPS
The best time to go shopping is at night or on Sundays when the
dealers are closed. You can take your time to look at cars and window stickers
without having to deal with pushy sales people.
PICK UP A FREE BROCHURE
Automobile Manufacturers give local dealerships free brochures
to distribute to the public. These brochures list colors, options, standard
equipment, engine performance characteristics and Preferred Equipment Groups.
Stop by a local dealership and ask for a free brochure. Or call the
manufacturer's customer service number shown in the Phone Number section of this
book and ask them to mail a free brochure to your home address.
CHECK THE VEHICLES RATING
Vehicle ratings are available in books, newspapers and
automotive magazines. I recommend Consumer Guide ($5.99), which rates vehicles
"and" lists the cost for each option.
WARRANTY SERVICE
Where will you go for warranty service? Is there only one local
dealer or are there several? What if you move? Will there be a dealership
nearby? A major advantage of buying an American made car is that you can get
service almost anywhere. Some imports only have dealerships in major cities.
This could cause major problems if you breakdown in the country or rural areas.
Think about it! Just how far are you willing to have your car towed for service
and how long will it take to get the work done? After the warranty runs out,
where will you take it and how much will it cost?
FUEL ECONOMY
Miles Per Gallon (MPG) estimates are listed on the MSRP sticker.
If you drive mainly in town, pay extra attention to the "city" MPG.
Some vehicles that get excellent highway mileage may get only fair MPG in the
city. For a free "Gas Mileage Guide" from the Dept. of Energy, write
to the Consumer Information Center, Pueblo, Colorado 81009.
27
BUY THIS YEARS MODEL
The trade-in value of most vehicles depreciates over time and as
a result each year the vehicle becomes worth less money. Dealers realize this
and will give you a small discount for buying last year's model (dealer
overstock). However, The instant depreciation (cars can drop thousands of
dollars in value as you drive off the dealer's lot) from buying an "older
car" is usually more than the discount that the dealer is willing to offer.
A few years later when you try to trade the vehicle in it can be worth thousands
of dollars less than if you had bought the more current model (you lost money).
Therefore, it is usually better to buy this years (most current) model, unless
you plan on owning this vehicle for 5 or more years. Sooner or later you will
have to pay the depreciation.
CALL LOCAL INSURANCE AGENTS
Get an insurance quote for each vehicle on your list,
"before you buy". There can be a big difference in insurance rates
between vehicles. Quotes should be based on full coverage ($250 deductible is
required by most lenders).
TAKE A TEST DRIVE
Stop by local dealerships and take an "extended" test
drive. Don't just drive around the block. Drive several miles in stop and go
traffic to get a real feel for the car. Each driver in your family should take a
test drive. Buying a car and discovering that your spouse can't drive it
comfortably or safely can be a nightmare. Most dealers will allow you to take
the vehicle for an overnight test drive, if you ask.
RENT A CAR
Rent a car, similar to the one you are buying, for the weekend.
This will give you a chance to experience how the car handles and how
comfortable (or uncomfortable) this vehicle really is? A weekend rental could
possibly help you avoid buying a car that just doesn't feel right.
COMFORT IS VERY IMPORTANT
Check for comfort! Are the seats comfortable? Is the roof to
low? Are there any blind spots? Do all passengers have enough head and leg room?
Is the steering wheel easy to turn at low speeds? Can you shift the transmission
easily? Do you have any problems getting in or out?
ACCELERATION AND BRAKING
How does the vehicle handle acceleration? Is it sluggish? Do you
need a car with a larger motor to handle stop and go traffic or to pull a
trailer? What about high speed passing, hills and pot holes?
BUY FOR RESALE VALUE
Depreciation is the real cost of ownership. If a vehicle loses
thousands of dollars in resale value as you drive out of the dealers parking
lot, you will lose money when you trade in the vehicle a few years from now. Use
common sense to lower the cost of depreciation. Never buy a big four door sedan
with a stick shift (who would buy it from you?). Buy the right type of options
for the type of vehicle you are buying. Don't buy wild (Fad) colors because it
could become difficult to sell later.
28
FACTORY OPTIONS
Consider comfort, resale value and safety when selecting options.
PEG
Preferred Equipment Groups save you money. Factories save money
by "mass producing" nearly identical vehicles (versus every vehicle
being custom made) and pass these savings to the customer in PEG's. Because
sometimes you can get over $1,000 in options for less than $200 you should
carefully read the factory brochure and select the PEG that best suits your
needs and budget.
POWER STEERING AND BRAKES
Power steering and power brakes are the most important resale
value options. They make driving easier and safer. Buy them!
AIR CONDITIONING
Factory air conditioning is worth the additional cost. It offers
to you and your passengers comfort and it makes your vehicle easier to sell a
few years from now (try selling a car without air conditioning in Florida in
July). A/C has excellent resale value, after 3 or 4 years you can get back
approximately 50% of the original cost.
AUTOMATIC TRANSMISSION
An automatic transmission offers easy hassle free driving. Furthermore when you
resell this vehicle there may be more potential buyers. Automatic transmissions
are expensive, but you get part of the cost back at trade-in time because
automatics get higher resale value than standard transmissions.
STANDARD TRANSMISSION
The three primary advantages of a standard transmission (stick
shift) are lower cost, slightly better fuel economy and better acceleration. The
disadvantages are; it can be a hassle in stop and go traffic, a standard
transmission may be harder to sell, and many people cannot drive a stick shift.
If there is an emergency, and someone other than yourself needs to drive the
vehicle to the hospital, will they able to do so?
POWER LOCKS
The benefit of power locks is small in a 2 door coupe, but
is greatly increased in a 4 door sedan. Power Locks offer two primary benefits.
The obvious one is letting someone into your vehicle without the hassles of
manually unlocking the doors. The second benefit is safety. Power door locks
allow you to quickly lock out an intruder.
29
POWER WINDOWS
Power Windows offer convenience and safety. You can roll up the
windows without stopping the car in case of sprinklers, changes in weather or
unwelcome intruders.
ELECTRIC REAR WINDOW DEFOGGER
If you live in a cold weather state a factory installed electric
rear window defogger is an excellent investment. They can remove fog from your
windows in just minutes which can save you time and makes driving safer. Factory
installed defoggers are usually a much better quality and have fewer problems
(wires coming loose, etc...) than after-market (dealer installed) defoggers.
TILT STEERING
Consider tilt steering if more than one person drives your
vehicle or if the standard steering wheel is uncomfortable for your body size or
physical disabilities.
AUTOMATIC SEATBELTS
Automatic seatbelts are a life saving feature. The difference in having your
seatbelt on or your seatbelt off can be a life or death decision. Take a minute
an look at your family's seatbelt habits and decide it you need to make it a
point to look for a car with automatic seatbelts
AIR BAGS
Air Bags can save your life. In the event of an accident it
provides an extra cushion that slows your forward momentum in an accident.
Please note that air bags do not replace seat belts. For true safety you should
use airbags "and" seatbelts. Look for vehicles that include air bags
for the driver and passengers as standard equipment. If the air bags are
optional ask yourself "Which is more important; my money or my life?"
Some insurance companies offer discounts for cars with air bags.
(ABS) ANTI-LOCK BRAKING SYSTEMS
Anti-lock brakes can save your life too! They help reduce
stopping distances which can help prevent accidents. Additionally, more and more
new cars are coming equipped with ABS. What happens during an emergency stopping
situation when the car in front of you has ABS (short stopping distance) and you
don't have ABS (longer stopping distance). Crunch! The possibility of causing an
accident becomes very real. ABS could save your life and lower your insurance
premiums. Look for it!
30
"DEALER
INSTALLED EXTRA'S"
New car dealers add options for two primary reasons. Increased
sales and higher profit per deal. Some dealers charge reasonable prices for
quality equipment. Other dealers, out to make a fast buck, install cheap generic
equipment and charge high prices. It is important that you know exactly what you
are buying, where to go for warranty service and the dealers cost. You may be
able to save money by going directly to the outlet store and paying to have the
work done yourself.
FACTORY WARRANTY?
Beware, some after-market products, especially electronics and
air conditioners, whether installed by the dealer or local outlet stores may
void all or part of your factory warranty. If something goes wrong who will fix
it? You may be better off to find a vehicle with factory installed equipment.
APPEARANCE PACKAGES
Appearance Package stickers usually appear in the window next to
the MSRP sticker. The sticker does not say what an appearance package consists
of. Since dealers charge anywhere from $39 to $799 for these packages, most
consumers believe that they are actually receiving some sort of added benefit
from the appearance package. However, Appearance Packages consist of mainly one
thing... dealer profit. Dealers often apply $20 pinstripes and $10 door edge
guards to a vehicle and call it an appearance package. Don't let the dealer
profit at your expense. Ask what the package consists of and pay only the
dealers cost, which should be listed on the dealers invoice.
DEALER ADD-ON STICKERS
Dealer "add-on" or "bump" stickers are
usually located to the right of the MSRP sticker. Dealers add radios, appearance
packages, graphics, custom wheels, sunroofs, bedliners, spoilers and ground
effects, etc... to make their vehicles more attractive. They also want to
increase profits with big mark-ups.
Verify the dealers cost by checking around for similar equipment at outlet
stores or car customizers. Also ask to see the cost listed on the dealers
invoice. Pay only the dealers cost.
DON'T OVER CUSTOMIZE
Generally, customizing adds little or no value to the vehicle.
Money Gone! If you do customize, do it tastefully. What would the average buyer
look for in a used car? Graphics, ground effects, custom wheels etc... look
good, but they have little resale value. Some types of customizing (exotic paint
jobs, etc...) can actually reduce the resale value.
DEALER INSTALLED RADIOS
The dealer mark-up on dealer installed radios may be outrageous.
Don't just agree on a price. Agree on a radio. If you don't, the dealer may
install a cheap generic radio that sounds terrible. Shop around at local car
radio stores and s |